Income Tax Audit
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Transcript of Income Tax Audit
INFORMATION TECHNOLOGY IN
AUDITING
A REVOLUTIONARY CONCEPT
INTRODUCTION
• Maintenance Of Accounts In Computerized Networks
• Process Of Collecting And Evaluating Evidence
• Examinations Of Controls Within Computerized Environment
REASONS FOR IT AUDITING
• Absence Of Input Documents
• Lack Of Visible Transaction Trail
• Lack Of Visible Output
• Accessibility Of Data And Computer Program
APPROACHES
• The Black Box Approach
• The White Box Approach
• Computer Program Approach
IT AUDIT PROCESS
• Obtain An Understanding Of The Organization Environment
• Identify Risks That Result In Material Mis-statement
• Evaluate Organization Response To Those Risk
• Asses The Risk Of Material Mis - statement
• Evaluate Results And Issue Reports
CAAT
• Computer Assisted Audit Techniques
• Tool For Auditors To Gather Evidences Independently
• To Gain Access And To Analyze Data For Pre-Determined Audit Objective
• Technical Auditing Working Papers
AUDIT SOFTWARE
• Generalized Audit Packages
• Purpose Written Software
Embedded Audit Facilities
Program (parallel) Simulation
• Utility Programs
TEST DATA
• Test Packs
• Integrated Test Facility
• Data File Interrogation
MISCELLANEOUS TECHNIQUES
• System Activity File Interrogation
• Program Code Analysis
• Flow Chart Review
A C I
• Will Organization's Computer System Be Available For Business At All Times When Required? (Availability)
• Will Information In The System Be Disclosed Only To Authorized Users? (Confendiatility)
• Will The Information Provided By The System Always Be Accurate, Reliable, And Timely? (Integrity)
CONTROLS
• Input Controls
• Processing Controls
• Output Controls
MANUAL VS COMPUTERISED AUDIT
• Complexity Of Accounting System
• Audit Trails
• Internal Control Systems
• Audit Planning
• Consequences Of Errors
LIMITATIONS
• Knowledge Of Computer Programs
• Understand The Computer Program Language
• Very Expensive
• Dependence More On Other Persons
• Settings of Software
THANK YOU
BY,PREM KUMAR .S.PRADEEP KUMAR .N.SURESH BABU .R.KIRAN KUMAR